Rent for HDB increase 0.4%, while rent for condos fell 0.4%
The demand for rentals of HDB flats is expected to grow with the support of local residents as well as foreign students and blue-collar workers.
More HDB flats were leased out in April, with rents rising 9.2 per cent to approximately 2,941 units.
The HDB rental market fell 9.5 percent year-over-year and 9.7% lower than the 5-year average in April.
The gap in rental rates between HDB flats in estates which are not yet mature, and condominium units in the suburbs continues to narrow.
The declining rental prices will make Singapore more appealing to multinational companies, which in turn will draw more expats to work in Singapore.
The number of condos rented in April rose by 3.1 percent to 5,874 units. While the total number of condos leased increased by 4.4 per cent year on the previous year, it was 6 per cent lower than the five-year average for April.
The rising demand for condos is a reason for some landlords to decide to let their properties quickly and compromise on their asking prices, instead of leaving their homes empty.
In April, tenants chose smaller condos to reduce cost of rent in an uncertain economy.
However, HDB rents edged up 0.3 percent in April, rising at a slower rate when compared to the 0.6 percent rise recorded in March.
Rents increased due to the lack of rental units. Fewer flats have met their five-year occupancy minimum, since 2022.
Demand has remained resilient as certain tenants continue to opt for HDB flats, which continue to offer the lowest cost housing options in the market
Rents of flats on estates that are mature have increased by 0.7 percent, while rents on non-mature estates fell by 0.3 percent.
Five-room flats had lower rents in April, declining by 0.4 per cent. Other flat types, such as three- and four-room flats, and executive apartments – recorded slight increase.
HDB rents have increased 7.6 percent over April 2023. This is applicable to all flat types in the non-mature and mature estates.
Rents for a condo unit with three bedrooms in Sengkang, for example the rent ranged from $3,700 to $4,500. For comparison, median rents for HDB executive flats with five rooms within the estate ranged from $3,350 to $3,600.
Renting a condo with a price that is a bit higher might be a better option for tenants
Rents for HDBs are expected to rise slower than condo rents during the second half of 2024 due to tenant opposition to rent increases.
